GBPUSD:
GBP/USD finally returned above the 1.2600 mark on Wednesday, helped by the market softening its recent bullish stance on the Dollar. There is still little economic data on the UK side of the calendar, and after Wednesday’s broad US figures were released broadly in line with expectations, markets are set for a quieter remainder of the week.
Investors will see a noticeable restriction in market flows on Thursday and Friday: On Thursday, US markets will be completely closed due to the Thanksgiving holiday, while Friday will also see a lull, with most US exchanges cutting back their opening hours. Next week’s UK data dossier remains similarly sparse, and on Friday investors will be turning to another round of US non-farm payrolls data with plenty of preliminary employment data to spoil the experience.
U.S. gross domestic product (GDP) rose at an expected 2.8% annualized rate in the third quarter, which came as a surprise to no one and did little to sway investors’ pulse. The core Personal Consumption Expenditure Price Index (PCEPI) accelerated to 2.8% for the year ended October, also meeting expectations. While rising inflation readings are usually bad for market expectations for future rate cuts, the upward movement was widely expected, and the monthly reading’s persistence at 0.3% m/m helped to portray that the sharp rise in the data remained in the past.
Trading recommendation: Watch the level of 1.2680, when fixing above it consider Buy positions, when rebounding consider Sell positions.
Origin: FreshForex
